Twitter stock slumps after earnings report

The report beat expectations, showing a first quarter revenue that more than doubled to $250 million. But it also showed that while Twitter’s user base is still widening — hitting 255 million active monthly users last month — it is still not growing users at the pace expected of a social networking giant. That user growth is a gain of 25 percent year over year, but actually represents a slowdown compared to quarter four, which saw a year over year gain of 30.3 percent.

The company also still is not profitable, with a net loss of $132 million in quarter one, though advertising revenue is growing quickly.

“We had a very strong first quarter. Revenue growth accelerated on a year over year basis fueled by increased engagement and user growth,” said Twitter CEO Dick Costolo, in a statement. “We also continue to rapidly increase our reach and scale.”

Twitter has been a major loser so far this year among tech stocks. The stock surged to $44.90 after it made its debut on the NYSE in November, but was down to $43.03 as of Tuesday’s close. At one point in after hours trading, the stock feel below its IPO price of $38.80.